Identification of trade-related graduation challenges and trade roadmap for the leather and leather goods sector

Abstract

Bangladesh is on track to graduate from LDC in 2026 after meeting the requirements for all three criteria in the UN-CDP's first and second triennial reviews, which were held in 2018 and 2021, respectively. The graduation shows Bangladesh's remarkable growth trajectory over time, but it will also present many complex challenges in terms of market access, value addition requirements, additional tariffs, preferential benefits in regional and bilateral agreements, subsidies under WTO agreements, and preference erosion. Given that 71% of all exports are made under preferential agreements with developed and developing nations, exports are predicted to be the most negatively impacted. In light of the circumstances, Bangladesh must act quickly to strengthen the export-oriented companies' ability to handle the graduation issues. The study addresses goods made of leather. The report presents sector-specific advantages, disadvantages, opportunities, risks, and countermeasures to realize export potential and maintain growth driven by exports. The report also suggested a plan for strengthening the export-oriented sectors' ability to support the main opportunities and obstacles and offer specific solutions for the latter. Bangladesh finished its Diagnostic Trade Integration Study (DTIS) in 2016 with assistance from the World Trade Organization's (WTO) Enhanced Integrated Framework (EIF). The DTIS developed a four-pillar strategy that includes the following pillars: 1) Entering new markets; 2) Entering new product categories; 3) Enhancing the well-being of workers and consumers; and 4) Establishing a conducive environment that could spur the export industry's expansion and create new avenues for competitiveness. However, the graduation scenario was not apparent and could not be taken into account when the DTIS 2016 was being conducted. The study addresses goods made of leather. The report presents sector-specific advantages, disadvantages, opportunities, risks, and countermeasures to realize export potential and maintain growth driven by exports. The report also suggested a plan for strengthening the export-oriented sectors' ability to support the main opportunities and Obstacles and offer specific solutions for the latter.